Abstract: Abstract: Based on 30 provincial-level regions panel data from 1998 to 2013 of China, and in the perspective of Cobb-Douglas production function, this paper has carried on the empirical analysis on the relationship of health care spending and economic growth by an established two-way fixed effect model. The results showed: first, both the government health care spending and the residents’ health care spending do a significantly contribute on economic growth. Among them, when the government health care spending grew 100%, it will promote 12.08% growth of economics. And the expenditure on the residents’ health care can promote about 15.85% growth of economics as it grew 100%. Second, after considering the unbalanced development of economic from different regions, we found that the difference in effect on economic growth is very large. Which the government health care spending brings a “wavy” effect on the growth of economic, and the residents’ health expenditure on economic growth showed a “ladder” effect. This study can provide some reference for the local government to promote economic growth and improve people’s livelihood through control health care expenditure reasonably and adjust the size of health policy.